Punters want confirmation?
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From a weekly perspective, KNB remained flat. Yes, absolutely flat on 3.2. Ran to 4.1 on news, but finished on the low of the week at 3.2.
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So what is happening? The news was good, but maybe not enough. Gold play reminds me of Lithium/REE/Graphite/Cobalt/Uranium play of 2021 and first half 2022. The sector on a high. Every Tom, Dick and Harry became a part of that industry. Just buying land was enough to gain 30/40%. Started drilling would double. Any positive news, no limits 2 to 3 times. Running on hype and potential. Gold is in that state now. Every day there is few Gold stocks trying to play that hype. Many Li stocks are now Gold stocks. So we have competition. Every day. Not many can discern what is genuine, what is hype, pump and dump. So we wait for more confirmation.
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Personally last week I wrote I bought average 3.1. I also wrote last week that I like to trade, a portion, I may play nearly every day. I did play a few this week, especially on news when it was struggling to get above 4 in good way. Bought back I sold but have not added to my position. But brought my average to 2.9, not much but on something going bad, it helps. If going up, it does not matter.
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So what may happen next week? There are some big holders here. Its a double edged sword. If they are not happy, stock could crash. But if they are happy and want to add, it can add a lot. Even if they are happy to hold, many will support the price. I feel we are in that state now. There is a good chance price may be held around this level, unless there is some bad news. But I follow price action and will continue to do that. Someone was talking about early to mid 2s. Its possible. Just over 2 weeks back, it was mid 2s. Just over 1 month back it was mid 1s. So it can happen. But I feel it may only happen on bad news, not on technicals. Otherwise, a slow grind back to 4s is possible. Lets hope it plays out that way. All the best.
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